Move precedes US$500m IPO
Honiton Energy Holdings, a London-based wind energy company that produces power in Inner Mongolia, is seeking to raise as much as US$300 million in a private placement before an initial public offering in Hong Kong as early as next year, market sources said.
'We're in the midst of arranging financing,' said Honiton chief executive Paul Eveleigh, without providing details. The company could try to raise about US$500 million from the public offering, he said.
The financing had slowed earlier this year because of disagreements between the Inner Mongolian provincial government and the National Development and Reform Commission over the structure of the deal.
'The NDRC has this standard agreement form they use on every deal' that the Inner Mongolian government did not think fit in this case, said one source who declined to provide more details.
Beijing has been trying to rein in the country's rampant economic growth by exercising more control over some development projects.
'The provinces are incentivised to have things growing more quickly so often they are more aggressive than central policy would allow,' said the manager of one investment fund. 'We've seen situations where we're ready to set up business but the provincial-level guys have said that has to go to Beijing now.'